Standard boss: my bonus was on line

Standard Life chief executive Sandy Crombie considered waiving his £135,000 bonus for last year to show solidarity for policyholders who have seen their own bonuses from the mutual slashed.

Mr Crombie saw his package rise 16pc to £603,000, including a £135,000 performance-related bonus, in 2003 when he was chief investment officer. Standard's flagship £31 billion with-profits fund grew 14pc during the year.

However, the group's with-profits policyholders last month suffered their fifth bonus reduction in two years, reflecting slumping stock markets, low inflation and low interest rates on smoothed investment returns.

Asked whether he thought about waiving his bonus to recognise to policyholders' difficulties, Mr Crombie said: "I did consider it and I thought that on balance it would be ineffective.

"Once you start saying to executives: 'give up bonuses', I think there is a question about where you stop. The trend in policyholders' final payouts is going to be potentially down for a number of years yet."